Most Firms Intend To Increase Base Pay To Combat EU Bonus Cap

Dunce's Cap

But will yours ?

More than half of banks said they would increase salaries to offset the effect of European Union bonus caps, according to a study by human resources consultants Towers Watson & Co.

Bloomberg reports that the poll, of more than 150 human resources employees, found that only 7% thought the EU rules would be successful in reducing pay across the financial services industry. About 53% said they would increase pay.

Finance workers will also receive more training, increased pension contributions and flexible working programs as a result of the bonus rules, according to the report.

Banks 'are aware that when the EU bonus cap comes into force, many of their employees are going to receive overall lower pay and they recognize the need to make up for this shortfall in a number of different ways', Mark Shelton, a managing director at Towers Watson, said in an e-mailed statement.

Hit the link below to access the complete Bloomberg article:

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